CHAMBER ADVISORY BALLOT

Chamber members are encouraged to vote in this general election.  Ballots were mailed mid-October, but returns must be postmarked or delivered to an approved station by Tuesday, Nov. 5, 8:00 p.m.

The Chamber’s advisory ballot:

NO      Tacoma’s Prop 1 to increase Tacoma’s utility taxes

NO      Washington I-517 which enables initiative canvassers’ trespass rights on private properties

NO      Washington I-522 which inaccurate, unnecessary, costly and harmful to farmers

The Chamber’s Voice for Business voters’ guide is available here for additional information on these ballot issues.

Chamber members may also reference the Voice for Business voters’ guide here for responses from candidates about issues and attitudes critical to the local business environment.

Also, the Chamber notes the independent Tacoma-Pierce County Business Alliance PAC has made these endorsements for their best business-oriented candidates in contested races. 

NO      Tacoma’s Prop 1

YES    Connie Bacon, Port of Tacoma Commissioner, Position 1

YES    Robert Thoms, Tacoma City Council, Position 2

YES    Joe Lonergan, Tacoma City Council, Position 5

YES    Victoria Woodards, Tacoma City Council, Position 6

Pierce County Council Joins Opposition to Tacoma's Prop 1

The Pierce County Council joined the City Councils of University Place and Lakewood as opposed to Tacoma’s Prop 1, a ballot measure solely within Tacoma that would increase taxes on residents and businesses of their jurisdictions (outside Tacoma).

The County Council voted five in favor and one opposed (with one absent) to oppose Tacoma’s Prop 1.

The TNT quotes Councilman Dan Roach: “Prop. 1 is ‘worse than taxation without representation’ because half of Tacoma Power’s customers live outside of the city limits, cannot vote on the issue and have no legal recourse.”

TNT Decries Council Politics with Utilities

The TNT reinforces its opposition to Prop. 1 in today’s editorial, noting several negative points for voters to consider.  City officials:

1)    “…developed with minimal input from the neighbors and many businesses it would impact”
2)    “…cavalierly suggested that Tacoma Power could swallow most or all of the additional 2 percent tax without passing this cost on to its ratepayers”
3)    "Or that Tacoma Power can dig into its reserves to keep rates down. (A very temporary fix.)”
4)    “…the utility’s credit can be downgraded – and ratepayers can wind up paying more when bonds are issued”

The TNT’s conclusion: “Tacomans ... shouldn’t be swayed by promises that they won’t have to pay for it.”

TNT Editorial Opposes Tacoma Prop. 1

The News Tribune joins a growing opposition to Tacoma’s Prop. 1.

We agree with their comments:  “Tacoma has shockingly bad streets and a shocking history of failing to invest in them … (but) Tacoma voters should hold on Prop. 1 and wait for city leaders to figure out a street-funding solution that fits into a larger, strategic budget solution."

No on Tacoma’s Prop. 1 utility tax  The News Tribune, October 20, 2013 

UP Council Unanimously Opposes Tacoma Prop 1

Last night, the University Place Council voted unanimously to oppose Tacoma's Proposition 1, a 33% tax increase on Tacoma Power (as it applies to University Place ratepayers).

Gary Brackett, the Chamber's Business & Political Manager, was requested by the Chamber's West Side Branch Board of Directors, to represent their position opposing Tacoma's Prop 1 during public comments before the University Place Council. 

After hearing an issue presentation from University Place City Manager Steve Sugg and the public comments, the University Place Council suspended its rules to consider the Resolution 735 opposing Tacoma's Prop 1.  Final action resulted in the adoption of Res. 735.

 (click on Image for a Larger View)

Lakewood Chamber Opposes Tacoma Utility Tax Prop 1

Lakewood Chamber of Commerce's Board of Directors Policy Position:  OPPOSE CITY OF TACOMA PROPOSITION 1

The City of Tacoma will ask its citizens to approve an additional 2% gross earnings tax on revenues earned by the city’s utilities in the November 5 general election ballot to mitigate costs associated with road improvements. This tax will be in addition to the current City of Tacoma 6% gross earnings tax charged Tacoma Power and its ratepayers. In addition, there is a state public utility tax of 3.873% on the gross earnings of Tacoma Power.

When Proposition 1 was first announced, Bill Gaines, the director and CEO of Tacoma Public Utilities, said that if voters approve a 2 percent tax on TPU’s earnings, the utility would be forced to cover its costs by raising consumers’ rates by a similar amount.

The vote on the tax will go to Tacoma residents, but TPU serves 160,000 customers - nearly half outside Tacoma.  If the tax is passed along, it would be passed along to customers in Lakewood, Fircrest, University Place, Fife, parts of Steilacoom, Joint Base Lewis-McChord and unincorporated Pierce County, as well.

Our argument against Proposition 1 as presented is that it unfairly taxes ratepayers outside the city limits of Tacoma.  The current 6% gross earnings tax goes to the city’s general fund and thus (arguably) provides all Tacoma Power ratepayers the benefits associated with funding the City of Tacoma’s general government functionality. This tax goes specifically to maintain the streets of Tacoma and does not provide non-residents or businesses any benefit.

Council Proposes to Endorse Its Own Unanimously Adopted Ballot Proposition

This morning, Tom Pierson, President & CEO of the Chamber, emailed members of the Tacoma City Council about their proposed endorsement of Tacoma Prop. 1, the Utility Tax Increase.

His email:

Mayor Strickland and members of the Council,

Just this morning the City Council’s agenda for this evening’s meeting was posted online.  Buried in this agenda is a new Resolution, No. 38748, expressing support for the Council’s Proposition 1 to raise an additional $10M in tax revenues.

As you are aware, the Chamber's Board of Directors voted to oppose this proposition.  This means we are also in opposition to Resolution No. 38748.

If passed, these taxes will be passed on to the end users resulting in higher consumer costs across the board.  While maintaining streets are important to the City, Tacoma currently spends a far smaller portion of its budget maintaining roads than similar jurisdictions.  Allocation of resources should be addressed before simply asking the public for more money.

If you have any questions on this issue, please don’t hesitate to contact me.

Tacoma’s $10+ Million Utility Tax Hurts New Jobs and Local Businesses

The Tacoma-Pierce County Chamber opposes Prop 1 Utility Tax Increase.

The Tacoma-Pierce County Chamber opposes the City of Tacoma’s Proposition 1 increasing utility taxes by 33% at a cost of over $10 million per year.

This measure, on the Fall ballot, proposes to increase the existing tax by 33% and add a $10+ million cost to consumers each year on their natural gas, electricity, telephone land lines and cell phone service bills. If passed, Proposition 1 would only partially fund basic road maintenance.

“The reality is that this tax will be passed on to the customer on top of the City Council’s recently added $20 car tab tax that was supposed to go towards fixing our roads,” said Tom Pierson, Tacoma-Pierce County Chamber President & CEO.

The City of Tacoma estimates that it needs roughly $800 million in additional revenue to fix existing transportation infrastructure inadequacies that the City has ignored for years. The proposed increase will take 80 years to correct existing problems – and hope that no new transportation needs occur.

“The Chamber supports responsible and sustainable planning that will improve Tacoma’s roads with a comprehensive solution for fixing roads, not a band aid approach that the Council has put forward to the voters this fall,” Pierson stated.

The Tacoma-Pierce County Chamber maintains that there are solutions aside from the Prop 1 Utility Tax hike:

•    Tacoma residents are now beginning to be charged the $20 license-tab fee adopted last year by the City.  These dollars should be used to fund road repair.
•    Allow the new Fiscal Sustainability Task Force to complete its work examining the City's revenue structure and budget deficit.
•    Allow the new Transportation Commission to advise the City on short-term and long-range transportation planning.
•    City Council must prioritize infrastructure maintenance with existing dollars.  The Council are currently spending less than 1% of its general fund budget on maintenance while other cities average nearly four times as much.

Tacoma Proposition #1 For and Against Committee Recommendations

In a special meeting of Tacoma’s Government Performance and Finance Committee held this morning, Committee Chair Joe Lonergan, Mayor Marilyn Strickland, Deputy Mayor Marty Campbell, and Councilman Robert Thoms voted unanimously to recommend:  

• Mark Martinez, Harold Moss, and Clare Petrich to the “For” Committee and  

•  Thomas Oldfield, Rachel Hanson, and Robert Casey to the “Against” Committee regarding City of Tacoma Proposition Number 1. 

Proposition Number 1, which would add a two percent earnings tax on utility companies for Tacoma street improvement, would fund the following: basic maintenance and safety upgrades for city roads, arterials, and bridges; permanent pothole repairs; pedestrian safety improvement to crosswalks near schools, sidewalks, and intersections; repaving of neighborhood streets; improved signal timing; and repairs to bridges. 

Applicants who were not recommended include: Mark Bubenik, Gary Romero, Kimberly Seely, Dave McEntee, and Sharon Benson, all nominees for the “Against” Committee.

Recommendations will be presented for adoption to the City Council tonight. 

The Chamber has not yet developed a policy statement on this ballot issue. Chamber members wishing to participate in this decision may attend a special meeting of the Chamber’s Government Affairs Committee, Tuesday, August 6, 8:00 a.m., Chamber Offices, Simpson Community Room, 950 Pacific Ave., Ste. 300, Tacoma 98402. 

UPDATE JULY 31:  The Chamber's Government Affairs Committee meets Tues., Aug. 6, 8:00 a.m., in the Chamber offices to review the City of Tacoma's Prop. 1 ballot issue proposing a 2% increase in gross earning tax on select utilities for Tacoma street infrastructure.